GOtv prices up
Digital service provider, Multichoice Malawi, has increased the price of its GOtv service following the introduction of 10 percent excise duty on television subscription.
The adjustment will see the price of GOtv plus bouquet going up from K6,900 to K7,590, GOtv Value will now be at K4,070 from K3,700 and subscribers to GOtv Lite will now be paying K1,430 per month from K1,300.
Some subscribers said the adjustment favours only those with high disposable income.
Linly Master, a tomato vendor in Limbe, said with the new prices, she will not be able to provide television entertainment to her children.
“Already, I was struggling to pay for the K1,300 subscription. With the adjustment, it means my family will be denied digital service television,” Master said.
Presenting the national budget on May 19 2017, Minister of Finance Goodall Gondwe said the 10 percent excise tax will be levied on subscription fees paid by consumers of fee-based TV service providers effective May 19.
Gondwe said excise taxes have a multifaceted functions ranging from revenue generation role to income distribution and influencing consumption behaviour of the populace.
“To the extent that we are shifting reliance, in the long term, on domestic resources mobilisation from income and investment to consumption taxes; and to expand the revenue base, we are introducing 10 percent excise tax on fee-based TV services.
“As you are aware, Mr Speaker, Sir, Government is already providing free TV services through MBC TV and it is pleasing to note that there are several free private TV service providers such as Zodiak, Times TV, just to mention a few, in addition to free religious TV service providers,” Gondwe said.